Agenus (AGEN) Down 1.5% Since Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Agenus Inc.AGEN . Shares have lost about 1.5% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is AGEN due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Agenus' Q1 Loss Wider than Expected, Shares Down

Agenus reported first-quarter 2018 adjusted loss of 42 cents per share (excluding loss on early extinguishment of debt of 11 cents per share), wider than both the Zacks Consensus Estimate of a loss of 28 cents and the year-ago loss of 18 cents. The higher net loss was due to several one-time items as well as non-cash charges.

The company did not generate any revenues in the quarter. The Zacks Consensus Estimate was $16 million. However, the company reported revenues of $27 million in the prior-year period.

Quarterly Highlights

Agenus' first-quarter research and development (R&D) expenses declined 9.8% to $29.4 million. General and administrative expenses decreased by 8.1% to $10.7 million.

Pipeline Update

Agenus is progressing well with various pipeline candidates. During the quarter under review, the company launched combination trials of CTLA-4 antibody, AGEN1884 and PD-1 targeting antibody AGEN2034 including trials in second line cervical cancer.

The company has shifted its strategy for first approval from first line non-small cell lung cancer to second line cervical cancer. The reasons for the strategy shift includes increasingly crowded lung cancer opportunities and Merck's recent data with Keytruda in combination with chemotherapy in first-line non-small cell lung cancer, which has set the bar higher for any future approvals.

The company remains on track to file six investigational new drugs (INDs) in 2018 and an additional two INDs in the first half of 2019. Amongst that, is the company's next gen CTLA-4, designed to deplete cancer-prone Tregs and improve T-cell priming.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.

Agenus Inc. Price and Consensus

At this time, AGEN has a poor Growth Score of F. Its Momentum is doing a lot better with a B. The stock was also allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise AGEN has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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